Method and System for Distribution of Unactivated Bank Account Cards

ABSTRACT

The invention comprises a method for distributing dead bank cards to customers who have not solicited a bank card or submitted an application. The dead bank card is a bank card (e.g., ATM card, debit card, check card, and the like) which contains all necessary information to be used, including a pre-assigned bank account number, and which only requires activation/approval by the prospective new bank account customer. In one embodiment, the dead bank card is distributed in connection with live credit cards issued to applicants for credit card accounts. Once operative, the bank card and the credit card may be linked together through a rebate/rewards program.

FIELD OF THE INVENTION

The present invention generally relates generally to bank cards, such asdebit cards, checking cards and ATM cards, and more particularly, to aninactive or dead bank card distributed in unsolicited fashion topotential customers.

BACKGROUND OF THE INVENTION

As we move from a paper-based to a non paper-based economy, consumersnow have a myriad of card-based options for purchasing goods andservices and for accessing their financial accounts. There areconventional credit cards (general revolving credit accounts);co-branded credit cards (revolving credit accounts issued in the name ofthe issuing bank and a partner, such as a university, airlines, computermanufacturer, and so forth, often including incentives or rebates usablefor partner discounts or rewards); private label cards (revolving creditaccounts issued in the name of a private company and typically usableonly at that company's stores, such as a Macy's or Hecht's card); storedvalue or gift cards (prefunded cards storing cash value, such as a Giantcard or Starbuck's card, that must periodically be replenished); ATMcards (allow access to the accountholder's bank account by inserting thecard into an ATM and entering a PIN number); and debit cards/check cards(allow access to the accountholder's savings/checking account to pay forgoods/services at a point-of-sale [POS] device).

Debit cards/check cards generally fall into two categories, so-called“on-line” or PIN-based debit/check cards and so-called “off-line” orsignature-based debit/check cards. PIN-based cards require entry of acorrect PIN to consummate a purchase, and the transaction is typicallyrun through a regional electronic funds transfer (EFT) network toapprove the transaction and, later, settle the funds transfer. Examplesof well-known existing EFT networks are STAR, NYCE, and Pulse.Signature-based cards are typically issued with a VISA/Mastercard (orother) card association logo/hologram, and transactions using such cardsare run through the associated card network. Signature-based cardstypically, although not always, will verify cardholder identity bychecking the signature of the person presenting the card. Because thefees associated with running transactions through a national networklike VISA/Mastercard are higher than those associated with regional EFTnetworks, some cards have both capabilities, and a merchant's POS systemmay provide for first attempting to run the transaction through theregional EFT before accessing a national network.

As described herein, ATM cards, debit cards, check cards, and storedvalue cards can be collectively referred to as “bank cards.”

For a number of reasons, consumers tend to be much less willing toswitch their bank accounts (or open new ones in addition to theirexisting bank accounts) than their credit accounts. Thus, while creditcard issuers find an active market of consumers ready to switch theircredit accounts and/or open up new credit accounts, savings/checkingaccount issuing banks are finding it increasingly hard to sign up newbank account holders so as to maintain or increase the customer base.

What is needed is a system and method that makes it easier and moreattractive to consumers to open new bank accounts.

SUMMARY OF THE INVENTION

An embodiment of the present invention comprises a method fordistributing unsolicited bank cards to potential customers includingidentifying a pool of potential new bank account holders; determining ifa person from the pool is an existing bank account holder; determiningif the person is eligible to become a bank account holder if notpresently a bank account holder; creating a dead bank card includingembossed information and magnetic stripe information; and distributingthe dead bank card to that person. The dead card is a bank card (e.g.,an ATM card, checking card, debit card, or stored value card) not yetactive, but which reflects and identifies a bank account (e.g., checkingaccount, savings account, loan account, stored value account, orsponsor-funded stored value account) that will be activated uponcustomer acceptance of the offer for a new bank account.

According to a further aspect of the invention, evaluation of thepotential new bank account holder may include determining whether thepotential customer was the holder of a bank account that was previouslyclosed with that bank. For such potential customers, the identificationof a previously-closed account may affect whether the bank decides todistribute the dead bank card in the first place and/or whether thatperson receives a special incentive to induce him/her to resume bankingwith that bank.

According to a further aspect of the invention, the bank may “prebuild”the bank account associated with the dead bank card so that customeracceptance of the offer can result in relatively immediate activation ofthe account.

According to another embodiment of the invention, the distribution ofthe dead bank cards is undertaken in conjunction with distribution oflive credit cards issued by the same bank. A customer application for acredit card is received and processed to determine an underwritingdecision on the credit card. The customer is also evaluated to determineif he/she is an existing bank account customer of the bank. If thecustomer is an existing bank account customer, a live credit card isdistributed to approved credit card applicants. If not an existing bankaccount customer, both a dead bank card and the live credit card aredistributed to approved credit card applicants.

According to a further aspect of the invention, customers receiving adead bank card and a live credit card may be incentivized to accept theoffer for a new bank account through linkage between the credit card andthe bank card through a rewards/rebate program.

According to another embodiment of the invention, the unsolicited deadbank card is a universal bank card that can be linked by a person to anexisting bank account, including a bank account provided by a bank otherthan the bank distributing the universal bank card. The universal bankcard includes embossed information and magnetic stripe information,including a universal account number that will be linked to anunderlying, preexisting bank account.

Accordingly, it is one object of the present invention to overcome oneor more of the aforementioned and other limitations of existing systemsand methods for attracting new bank account customers.

It is another object of the invention to facilitate new bank accountcustomers by providing a dead bank card that is inactive but otherwisefully reflects and represents a bank account associated with that cardonce the customer accepts the offer.

It is yet another object of the invention to facilitate new bank accountcustomers by co-marketing unsolicited dead bank cards along withsolicited credit cards for which a customer has submitted anapplication.

It is yet another object of the invention to facilitate new bank accountcustomers by co-marketing unsolicited dead bank cards along withsolicited credit cards by providing rebate/rewards program linkagebetween the bank card account and credit card account.

The accompanying drawings are included to provide a furtherunderstanding of the invention and are incorporated in and constitutepart of this specification, illustrate several embodiments of theinvention and, together with the description, serve to explain theprinciples of the invention. It will become apparent from the drawingsand detailed description that other objects, advantages and benefits ofthe invention also exist.

Additional features and advantages of the invention will be set forth inthe description that follows, and in part will be apparent from thedescription, or may be learned by practice of the invention. Theobjectives and other advantages of the invention will be realized andattained by the system and methods, particularly pointed out in thewritten description and claims hereof as well as the appended drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

The purpose and advantages of the present invention will be apparent tothose of skill in the art from the following detailed description inconjunction with the appended drawings in which like referencecharacters are used to indicate like elements, and in which:

FIG. 1 is a flow diagram of a method for distributing dead bank cardsand live credit cards to credit card applicants according to anembodiment of the invention.

FIG. 2 is a flow diagram of a method for evaluating potential recipientsof dead bank cards and live credit cards to applicants for credit cardaccounts according to an embodiment of the invention.

FIG. 3 is a flow diagram of a method for a customer to activate a deadbank card distributed in accordance with the present invention.

FIG. 4 is a block diagram illustrating various consumer touchpoints foractivating a dead bank card distributed in accordance with the presentinvention.

FIG. 5 is a block diagram illustrating the linkage of a credit cardaccount and a bank account through a rewards/rebate program according toan embodiment of the invention.

FIG. 6 illustrates a sample mail communication providing a dead bankcard and a live credit card to a credit card applicant according to anembodiment of the invention.

FIG. 7 illustrates a sample mail communication providing a dead bankcard and a live co-branded credit card to a credit card applicantaccording to another embodiment of the invention.

FIG. 8 is a flow diagram of a method according to another embodiment ofthe invention for distributing dead bank cards to potential bank accountholders.

DETAILED DESCRIPTION OF THE INVENTION

This application is related by subject matter to Brake, et al, U.S. Pat.No. 6,032,136, entitled “Customer Activated Multi-Value (CAM) Card,”herein incorporated by reference in its entirety.

FIG. 1 illustrates a method for distributing dead bank cards and livecredit cards to credit card applicants according to an embodiment of theinvention. As referred to herein, “bank cards” refers to cards providinga consumer access to a bank account, thereby encompassing so-called ATMcards, debit cards, checking cards, stored value cards, and the like,which provide access to funds in a savings and/or checking type and/orother type bank account. The bank account could be a checking account,savings account, loan account, stored value account, sponsor-fundedstored value account, and the like.

As referred to herein, “dead” bank cards refer to bank cards which arephysically identical to a live bank card (i.e., are embossed orotherwise inscribed with the account holder's name, account number, andthe like, and which include the appropriate magnetic stripe data), butwhich reflect a bank account that is not yet activated because thecustomer has not accepted the bank's offer for a new bank account.Therefore, such a bank card is in essence a dead card because thecustomer did not made an application, and at the time the bank card isdistributed the customer has not yet responded positively (customer'sacceptance) to the unsolicited overture (bank's offer). The dead bankcard is capable of full functionality upon activation because it isdistributed to the customer with all necessary information, including abank account number assigned to that prospective customer before thecard is sent.

It should be understood that while a number of actions disclosed hereinare (for purposes of clarity) characterized as being carried out by thebank, those of ordinary skill in the art will appreciate that theseactions can easily be carried out by the bank's agents, partners,contractors and the like, without departing from the spirit and scope ofthe present invention.

The method of FIG. 1 starts at 100 and proceeds to 104 where thecustomer applies for a credit card. The application may be a writtenapplication sent through the mail or dropped off in a bank branchoffice, a store, or any other depository for credit card applications.The application may be a completed application GUI form submittedthrough the Internet or an electronic application submitted viaelectronic mail. The application may be communicated verbally through aphone call with a human customer service representative (CSR) or anautomated interactive voice response (IVR) unit. The credit cardapplication may have been instigated by the bank through a marketingoverture (print, direct marketing phone call, Internet, e-mail, and soforth), or the application may have been initiated by the customer. Thecredit card application may have been instigated by a co-branded partnerof the bank.

As reflected at 108, the customer typically will supply basic borrowerinformation, such as name, social security number, address, phonenumbers, income/asset/debt information, and the like. At a minimum, thecustomer should supply or confirm basic borrower information sufficientfor the bank to access a credit report(s) for the customer, as reflectedat 112. At 116, the credit card application is processed to provide anunderwriting result, which may be an approval or a denial, as reflectedat step 120. According to one implementation (not shown), a thirdinterim result of “approval pending” may result if the applicant isborderline and/or further information is required before an approval ordenial can be issued.

If the applicant is finally denied (“No” at 120), a denial result iscommunicated (e.g., by mail, phone, email, the Internet, etc.) to theapplicant at 124.

If the applicant is approved for the credit card account, at step 128 itis optionally determined whether the customer is within the bankingfootprint, i.e., the area in which the bank offering the credit cardalso offers banking (checking/savings) services. This beneficial stepensures, for example, that a bank providing banking services only inCalifornia and New York will not be sending unsolicited dead bank cardsto credit applicants residing in Alaska. Step 128 can be implementedsuch that the applicant must reside within the banking footprint (e.g.,within California or New York in the example given) or must reside in alocation proximate to the banking footprint (e.g., within California orNew York or within 50 miles of either state).

Step 128 is optional to the invention. In some cases, for example, ifthe bank is a national bank and/or if the bank offers nationwide bankingservices via the Internet, step 128 need not be implemented.

If the credit applicant is not within the banking footprint (“No” at128), the bank communicates only the approval of the credit applicationto the applicant, at 132, and only the live credit card will be sent tothe applicant. Live credit card refers to a credit card for a creditaccount for which an application has been submitted and fully processed(i.e., an offer has been made by the applicant and the bank has acceptedthe offer). The card is either fully active, meaning that it can be usedimmediately, or simply requires a confirmatory call (i.e., phone call toan IVR or CSR, Internet access, email confirmation, regular mailconfirmation, etc.) to activate the card.

If the credit applicant is determined to be within the banking footprint(“Yes” at 128), the customer is next evaluated to determine if he/she isan existing bank account holder with the issuing bank at 136. If thecredit applicant is already an existing bank account holder (“Yes” at136), the bank communicates only the credit card approval and sends onlythe live credit card to the customer, as described above.

If the credit applicant is not an existing bank account holder (“No” at136), the bank communicates approval of the credit application, as wellas an offer for a new bank account to the credit card applicant, at 140.At 144, the live credit card and the dead bank card are distributed tothe customer. It should be noted that steps 140 and 144 can be performedthrough two communications (e.g., a first letter informing the customerof approval for the credit card and an offer for a new bank account, anda second letter with the live credit card and dead bank card) or asingle communication (combining both of the aforementioned).

It should also be noted that, while not depicted FIG. 1, prior to thecommunication of the offer for the bank account (step 140 and/or 144),the bank may prebuild the new bank account, discussed further below forFIG. 2.

The steps disclosed in FIG. 1 (and the figures that follow) can becarried out by conventional hardware and software, such as applicationprocessing servers operated by the bank or its agents, web servers, andthe like. Customers can interact with the bank via any personalcomputing or communications device (e.g., personal computer, PDA,web-enabled wireless device, home phone, cell phone, and the like), viapaper mail, and via a phone call to a CSR or IVR.

FIG. 2 is a flow diagram of a method for evaluating potential recipientsof dead bank cards based on applications for credit card accountsaccording to an embodiment of the invention. Step 136 of FIG. 2 (whichmay correspond to step 136 of FIG. 1) provides for determining whetherthe credit applicant is an existing bank account holder, and may includeone or more steps such as checking the social security number providedby the credit applicant at 202, checking borrower-supplied bank accountnumbers provided by the credit applicant at 206, and/or checking theborrower name at 210. Other steps for determining whether the creditapplicant is an existing bank account holder could readily be added orsubstituted.

At 214, it is determined if the credit applicant is a past bank accountholder. This determination can be useful in two regards. First, the bankmay wish to evaluate the reason the prior bank account was closed. Forexample, if the account was closed because the customer was continuallybouncing checks or otherwise attempting to overdraw an account, or forother reasons indicating that the person was a poor customer, the bankmay not wish to solicit that customer for a new bank account. Inaddition, or alternatively, the bank may wish to know whether the personis a prior bank account holder so that the dead bank card overture canbe handled differently. For example, the overture communication to thatperson might reference the person's status as a prior bank accountholder (“We noted that you were a past bank account holder with us. Wereally want you back!”) and/or might include the offer of an incentivefor the person to reestablish a bank account with the bank (“If youreopen a bank account with us we are prepared to make an initial $50deposit into your account!” or “If you reopen a bank account with us weare prepared to credit your frequent flyer account with 10,000 freemiles!”). (Of course, incentives like the aforementioned can be offeredto persons who are not prior bank account holders, as well.) If therewas a prior bank account (“Yes” at 214), the reason for closure of theprior account is determined at 218, which may include a review of therecords from the closed account. If there was no prior bank account(“No” at 214) the method proceeds to 222.

At 222, the bank may “prebuild” the new bank account, meaning that someor all of the records at the bank may be set up in anticipation of thecustomer deciding to open the new account corresponding to the dead bankcard. Thus, the bank may establish the new account number for the bankand prepopulate such data fields as the customer's name, social securitynumber, and so forth. According to one embodiment, the bank may prebuildthe new bank account to the point where it is fully ready for activationwithout any or substantial further data entry. The beneficial feature of222 is in harmony with one of the goals of providing the customer a deadbank card, which is to essentially make an offer for a new bank accountthat is “ready to go.” Thus, the customer has a physical bank card readyfor use, the bank has already set up the records for the new account,and so forth.

At step 226, the dead bank card is prepared. For conventional cardshaving an embossing section on the front and magnetic stripe section onthe bank, step 226 provides for embossing the front and writing (e.g.,by magnetic encoding or otherwise as appropriate to the stripe) to thestripe on the back. Preferably, the card contains everything needed tobe functional. The prospective bank account holder will not have tobring the card to a branch or other location to have it read, written,embossed, or otherwise modified. The dead bank card is ready for useonce the account records at the bank are activated. Those of ordinaryskill in the art will appreciate that step 226 can be carried out forvariations of conventional cards, such as a card having an electronicmemory instead of a magnetic stripe, a card employing writing techniquesother than embossing, and so forth. So-called “smart cards” should beconsidered within the spirit and scope of the present invention.

At step 230, the live credit card and dead bank card are distributed tothe customer. As discussed in FIG. 1, step 230 can be carried out usinga single or multiple communications.

There is a further embodiment that can be implemented as a variation orenhancement to the method of distributing dead bank cards and livecredit cards depicted in FIG. 1. According to this embodiment, themethod provides for the distribution of upgraded bank cards to existingholders of “standard” (i.e., non-upgraded) bank cards. Referring to FIG.1, at step 136 the method provides for determining if the credit cardapplicant is an existing bank account holder. According to this furtherembodiment, if the credit card applicant is an existing bank accountholder (“Yes” at 136), the method further provides for determining ifthe credit card applicant has a standard bank card, as opposed to anupgraded bank card that comprises the dead card in this variation. Forexample, the upgraded card may be a bank card providing a rewards/rebatefeature not provided for by the standard card. The upgraded card may bea co-branded card or provide some other feature or functionality thatrenders it an upgrade as compared to the standard bank card presentlyheld by the individual. If it is determined that the credit cardapplicant has only the standard card, then at steps 140 and 144 themethod provides for communicating an offer for the upgraded bank accountcard and distribution of the upgraded bank account card. The recipientof such an upgraded bank account card comprising the dead card willactivate the card as otherwise described herein.

FIG. 3 is a flow diagram of a method for a customer to activate a deadbank card distributed in accordance with the present invention. Inessence, FIG. 3 reflects the consumer's acceptance of the unsolicitedoffer provided by the bank for the dead bank card, and the bank'sactivation of the associated bank account number. At 302, the customeraccesses a website, and at 306 the customer supplies the bank accountnumber contained on the dead bank card. Optionally, for securitypurposes and/or for tracking effectiveness of the campaign, the customermay be requested to supply the credit card number at 310 for the livecredit card that was distributed with the dead debit card.

At 314, the customer may be requested to provide further information forsecurity purposes. This information may include a social securitynumber, mother's maiden name, phone number, and/or other data items.

At 316-324, the customer may fund the account using one or more ofseveral sources. At 316, the customer may fund the account with acustomer-supplied source of funds, such as a preexisting credit cardwith the bank or with another bank, a bank card for an existing accountwith another bank, a check for an existing account with another bank, anEFT for another account, a wire transfer, or any other suitable means.At 320, the customer may fund the account with funds to be provided fromthe new credit account that the customer applied for. At 324, thecustomer may fund the account with an incentive deposit provided by thebank. For example, the dead card offering bank may offer to seed theaccount with an initial $50 deposit.

At 328, final approval for the new bank account is established, and at332 the new account is activated. If the account was prebuilt, inessence no more is required. If the account was not prebuilt or was onlypartially prebuilt, the customer may be required to supply, and the bankmay be required to enter, additional information prior to activation.

If the dead debit card is a PIN-type on-line card, or a combinationsignature-type/PIN-type card, the bank may provide, or the customer mayrequest and the bank may confirm, a PIN number, password, or othersecurity indicia at 336.

FIG. 4 is a block diagram illustrating various consumer touchpoints foractivating a dead bank card distributed in accordance with the presentinvention. FIG. 4 may correspond to 302 of FIG. 3. Therefore, thecustomer touchpoint for activating the dead bank card may occur via acall-in to an IVR 402, a call-in to a CSR at 406, a visit to a localbranch or other physical location 410, or accessing an Internetsite/sending an email 412. The customer could even initiate his/heracceptance via regular mail (not shown). Other touchpoints for thecustomer to activate the dead bank card could easily be employed withoutdeparting from the spirit and scope of the present invention.

FIG. 5 is a block diagram illustrating the linkage of a credit cardaccount and a bank account through a rewards/rebate program according toan embodiment of the invention. Accordingly, credit card account 502 isthe account associated with the live credit card distributed to thecustomer, and bank card account 506 is the account associated with thedead bank card (which could be a dead card for new bank account or adead card for an upgraded bank card, as discussed for FIG. 1). Accordingto one embodiment of the invention, the accounts are beneficially linkedtogether through a rebate/rewards incentive 510. Thus, credit card usagemay result in rebate/rewards, just as bank card usage may result inrebate/rewards. The level or rate of rebate/rewards may differ. Forexample, the incentive provided for credit card usage may be higher thanfor bank card usage because the revenue generated for the bank is higherfor credit card usage. Although FIG. 5 depicts rebate/rewards based oncard usage, in addition or instead, the rebate/rewards could be based onopening the account in the first place. Thus, as previously described,the customer applying for the credit card with a rebate/rewards featuremight be encouraged to open the bank account by offering a furtherrebate/reward deposit based on activation of the dead bank card.

As referred to herein, rebate/rewards refers to any bank program forencouraging use of a card and/or maintenance of a card account byproviding something of value to the accountholder, such as funds basedon usage, funds based on longevity of the account, redeemable points ortheir equivalent (e.g., frequent flyer miles) based on usage and/orlongevity, and the like. Such rebate/rewards can be provided by the bankfor a bank branded card (i.e., no co-branded partner), by the bank for aco-branded card (e.g., frequent flyer miles for a Bank-Airlinesco-branded card, car miles for a Bank-Rental Car Company co-brandedcard, hotel points for a Bank-Hotel co-branded card, shoppingpoints/credits for a Bank-Supermarket co-branded card, and so forth), oras shared by the bank and a partner for a co-branded card. Of course,the co-brand partner could fund or underwrite the rebate/rewards intheir entirety.

Additionally, the incentive levels or values can be varied according tothe nature of the potential new bank account holder. For example, afirst incentive can be provided to a customer who is not an existingbank account holder and who is not a past bank account holder, and asecond incentive can be provided to a customer who is not an existingbank account holder and who is a past bank account holder, therebyproviding different incentives to entirely new bank account customersand those who are past bank account customers.

FIG. 6 illustrates a sample mail communication providing a dead bankcard and a live credit card to a credit card applicant according to anembodiment of the invention. Communication 600 is preferably a writtencommunication, such as a letter with the cards, which may include text680 announcing the approval of the requested live credit card as well asthe solicitation of the customer to open a bank account associated withthe dead bank card. Included with communication 600 is live credit card602 and dead bank card 618.

Live credit card 602 may be a Bank brand card having a bank name indicia606, credit account number 610, credit card account holder name 614, andinterchange identifier/hologram 616. Credit card 602 is a live card thatthe individual has applied for and is a fully approved account in thatall that is required is activation (e.g., a call to an 800# from thecustomer's home phone, email, regular mail, CSR, IVR, etc.);alternatively, credit card 602 may be a live card ready for use withoutfurther activation.

Dead bank card 618 may be a Bank brand card having bank name indicia622, a bank card name 628 (e.g., Bank One Debit Card), bank card accountnumber 626, and (prospective) bank card account holder name 630. Bankcard 618 is a dead card that the individual has not appliedfor/requested and that physically contains all necessary information tobe operative. It requires the customer to approve the new account(accept the offer) for the bank account to be officially opened.Preferably, dead bank card 618 is a card for an account that was notsolicited by the customer or instigated by the customer. Rather, thedead bank card 618 relates to a separate card/account proposed by thebank as a result of the customer's application for a credit account.Alternatively, as discussed previously, the dead bank card 618 mayrelate to an upgraded bank card providing additional features beyond thestandard card presently held by the individual.

FIG. 7 illustrates a sample mail communication providing a dead bankcard and a live co-branded credit card to a credit card applicantaccording to another embodiment of the invention. FIG. 7 is similar toFIG. 6 except that FIG. 7 provides a co-branded credit card 702 to thecustomer. The co-branded live credit card 702 may include interchangelogo/hologram 718, holder name 722, and credit account number 714, andbank name 706. In addition, card 702 includes a co-brand partner name/ID710. The partner 710 may reflect a marketing partner or affiliationpartner that may or may not include a rebate/rewards program.

The dead debit card 730 is similar to card 618 of FIG. 7, and includes(prospective) account holder name 746, bank account number 742, and bankname 738. Additionally, the card 730 may include a bank account cardname 734. In addition, while not depicted in FIG. 7, card 730 mayinclude a co-brand partner name/ID similar to that for card 702.

FIG. 8 is a flow diagram of a method according to another embodiment ofthe invention for distributing dead bank cards to potential bank accountholders. FIG. 8 relates to a method for distributing dead bank cardsthat is not necessarily undertaken with respect to customers applyingfor credit cards (although it might).

Therefore, the population of potential new bank card account holders maybe identified in a fashion other than by examining credit cardapplicants. For example, rather than using credit card applications asthe “trigger” for distributing dead bank cards, other trigger eventscould be employed. In particular, so-called “life event” triggers couldbe employed, such as one or more of the following: new movers(individuals who have just moved to a new address); marriage/divorce(individuals recently becoming married or divorced); death (death of aspouse or partner); birth (new child); new phones (opening of new phoneaccounts); and so forth.

Another trigger for identifying potential recipients of dead bank cardscould be based on so-called “recency” consumers. It is a well-knownphenomenon in the financial services industry that individuals who haverecently opened up a new account or renewed an existing account are morelikely to be receptive to an overture for another account or otherfinancial product. Therefore, a trigger for identifying a pool ofpotential bank account holders could be based on consumers who haverecently opened up a new credit card account, who have recently renewedtheir credit card account through a reissued card, or who have recentlyopened up or renewed some other type of financial services account. Byway of example only, as discussed below for FIG. 8, the population ofpotential new bank account holders may be identified based on consumerswho have opened up new credit accounts within three months and/or whohave renewed their credit accounts through reissue cards within threemonths.

Even more simply, the pool of potential new bank account holders couldbe identified based on existing credit card account holders (i.e., thepool is not limited to those who have recently opened up a new creditaccount or who have recently renewed their credit account throughreissue).

Turning now to FIG. 8, after starting at 802, a population of potentialbank account holders is identified at 806. This population could beidentified based on one or more of the following factors: personsapplying for a new credit card; persons within a banking footprint;persons undergoing one or more life events as described above; personswho recently opened up a credit account and/or renewed a credit account;and/or persons who are existing credit account holders.

Next, a person from the population may be checked so see whether he/sheis of a certain age or within a certain age group at 810. For example,it may be a regulatory requirement or a policy not to make unsolicitedbank account offers to persons under 18. Alternatively, or in addition,it may be desirable to target the campaign to persons in the age rangeof 25-45. If the person does not meet the age criteria (“No” at 810),the method proceeds to examine the next person from the population byreturning to the input of 810.

If the person meets the age criteria (“Yes” at 810), the person is thenexamined to determine whether he/she is an existing bank account holderat 814. If the person is an existing bank account holder (“Yes” at 814),the method proceeds to examine the next person from the age populationby returning to the input of 810.

If the person is not an existing bank account holder (“No” at 814), themethod proceeds to 818 to determine whether the person was a previousbank account holder. If the person was a previous bank account holder(“Yes” at 818), the reason for the closure of the prior account isdetermined/evaluated at 822. If the reason is not acceptable at 822, themethod returns to the next person at the input of 810.

Although not depicted in FIG. 8, steps 814 and 818 may provide inaddition or instead for determining (as appropriate for the triggeringfor identifying the pool) whether the person is an existing or was apast credit card account holder with the bank, and for evaluating theperson's payment history in connection with that account.

If the reason is acceptable at 822, the method proceeds to 826. Ifdetermined that the person is not a previous bank account holder (“No”at 818), the method proceeds to 826.

At 826, the bank may acquire credit bureau information on the person. Ifregulatory restrictions prohibit such unsolicited credit checks, thisstep may be skipped and undertaken when the prospective bank accountcustomer responds to the dead bank card overture.

At 830, it is determined whether the person is preliminarily approved oreligible for a bank account. If not (“No” at 830), the next person isevaluated as the method returns to the input at 810. Ifapproved/eligible (“Yes” at 830), the bank may prebuild the bank accountat 834, as previously described.

Next, at 838 the bank may generate (e.g., emboss and write) the deadbank card. At 842, the dead bank card is distributed to the prospectivebank account holder.

As described in conjunction with previous figures, the dead bank card ofFIG. 8 may be a bank brand card or a co-branded card. The dead bank cardof FIG. 8 may include a rebate/rewards feature for opening the account,using the account, and/or maintaining the account (longevity). Therebate/rewards feature may provide funds or points (or their equivalent)that are funded by the bank, a co-brand partner, and/or both.

According to yet another variation of the dead card invention, theoffering bank could distribute dead cards in the form of inactiveuniversal bank cards (referred to herein as a “Universal Bank Card”)that are not yet associated with an underlying bank account number.Rather, these cards can be associated with an existing bank accountnumber of the customer, including a bank account number for a bank otherthan the bank distributing the Universal Bank Card (hereinafter, the“offering bank” or “sponsoring bank”). The Universal Bank Card could beoffered with an incentive program such that usage of the card wouldresult in points or rebates as previously described. The personreceiving the Universal Bank Card would simply activate the card bycontacting (as previously described) the offering bank and associatingor linking the card with an existing bank account.

Accordingly, the Universal Bank Card could be distributed in conjunctionwith a live credit card as discussed above for FIGS. 1-2. The UniversalBank Card could be activated as discussed above for FIGS. 2-3.Activation would include the customer providing a bank account numberfor an existing bank account to be linked. Customers might also bepermitted to periodically change the underlying bank account linked tothe universal bank account number.

The Universal Bank Card could provide a reward/rebate feature tied tobank card usage, longevity, and the like, as reflected in FIG. 5. Such areward/rebate feature could be a stand-alone reward/rebate feature, orit could be integrated with a credit card usage reward/rebate feature asin FIG. 5. The reward/rebate feature could be implemented as aco-branded feature such that rewards/rebates would be generated based ongeneral card usage, but could be applied only to the co-brand partner(e.g., points only redeemable at partner Store X). Other variations arepossible. For example, the rewards/rebates might be generated based onspecific card usage with the co-brand partner (e.g., based only on usageat Store X), and could be applied specifically only to the co-brandpartner (redeemable only at partner Store X) or could be appliedgenerally (redemption not limited to co-brand partner).

A Universal Bank Card implemented with a rewards feature allows aconsumer to associate an existing bank account with the universal bankaccount in order to get reward value otherwise not available. Thisreward value can in whole or in part be effectively funded through thetransaction fee revenue generated for the sponsoring bank. For example,if the Universal Bank Card is implemented as an off-line signature-basedcard, transactions (e.g., at a merchant POS) will be routed through anational interchange such as the VISA® or MasterCard® interchange to thesponsoring bank holding the universal bank account (instead of the bankholding the linked bank account). As such, the sponsoring bank (insteadof the bank holding the underlying bank account) will receivetransaction revenue for each purchase. This revenue provides a mechanismfor the sponsoring bank to effectively share profits with the universalaccount holders through rebate programs or similar programs.

Therefore, transactions using the Universal Bank Card will be routed tothe sponsoring bank, which will approve or decline them. In so doing,the sponsoring bank may contact the bank holding the linked bank account(hereinafter, the “linked bank”) at that time or at a later time.Preferably, the sponsoring bank will issue relatively immediateapprovals, and will contact the linked bank at a later time to settlethe transactions. For example, the sponsoring bank may initiate ACHtransactions transferring funds from the linked bank to the sponsoringbank. Alternatively, the sponsoring bank may hold a certain volume(“stock”) of funds (e.g., $500) acquired from the underlying bankaccount so that such funds are always available for transactions usingthe Universal Bank Card. Periodically, the stock will need to bereplenished by ACH transfer, EFT transfer, or other transfer from theunderlying bank account.

In implementing the Universal Bank Card, the sponsoring bank may setcertain rules for approving transactions using the card. Just by way ofexample, there might be a limit of $200/transaction and no more than 5transactions/day.

The Universal Bank Card could be distributed along with a live creditcard as reflected in FIG. 6, except that the bank account number 626would be a universal bank account number that would be linked with anunderlying existing bank account number provided by the customer. TheUniversal Bank Card could also be distributed with a co-branded creditcard as reflected in FIG. 7 where, as with FIG. 6, the bank accountnumber 742 would be a universal bank account number to be linked to anexisting bank account number.

The Universal Bank Card could be distributed without reference to acredit card as discussed with reference to FIG. 8. Distributing aUniversal Bank Card according to FIG. 8 permits several modifications tothe method described thereby. First, the step 814 of determining if theperson is an existing bank account holder may optionally be omitted.This is because some persons already holding accounts with the UniversalBank Card sponsoring bank may also hold accounts with other banks.Therefore, such persons may be interested in a Universal Bank Card thatcould be linked to their existing bank account with the different bank.Steps 818 and 822 may be omitted for similar reasons. Step 826 mayoptionally be implemented because, while a Universal Bank Card holderwill have some level of creditworthiness by virtue of holding a validunderlying bank account, there is still some level of risk to thesponsoring bank justifying a credit check. If so, a preliminary approvalmay be determined at 830, and a universal bank account may be prebuiltat 834. At 838, the Universal Bank Card can be created (e.g., embossedand written), including the embossing of the universal bank accountnumber which, at the time of activation, the customer will link to anexisting bank account. At 842, the Universal Bank Account card can bedistributed.

The linking of the universal bank account number to the existing bankaccount number may be implemented at a processing center maintained bythe sponsoring bank or its agents, which center may include one or morecomputers, servers, and databases for carrying the method into effect.Note also that such computers, servers, and databases may also beemployed for carrying the methods of FIGS. 1-8 into effect.

As described above, the Universal Bank Account card can be considered adead card within the scope of the present invention because it is anunsolicited card representing an offer from the sponsoring bank whichthe customer can accept by contacting the sponsoring bank and providingan existing bank account to be linked.

Other embodiments and uses of this invention will be apparent to thosehaving ordinary skill in the art upon consideration of the specificationand practice of the invention disclosed herein. The specification andexamples given should be considered exemplary only, and it iscontemplated that the appended claims will cover any other suchembodiments or modifications as fall within the true scope of theinvention.

1-40. (canceled)
 41. A method for distributing debit cards, the methodcomprising: issuing, by a sponsoring bank, a debit card to a cardholder,the debit card being associated with a demand deposit account (DDA) heldat a linked bank that is different from the sponsoring bank; receiving,by the sponsoring bank, an authorization request for a card transactioninitiated with the debit card, the authorization request being routedvia a payment network; approving the card transaction; and settling atleast a portion of the approved card transaction with funds from theassociated demand deposit account held at the linked bank.
 42. Themethod according to claim 41, wherein the associated demand depositaccount is a pre-existing checking account or savings account held bythe cardholder at the linked bank.
 43. The method according to claim 41,wherein, at time of issuance, the debit card is already associated withthe demand deposit account.
 44. The method according to claim 41,wherein the debit card is associated with the demand deposit accountsubsequent to the issuance of the debit card.
 45. The method accordingto claim 41, wherein the debit card is associated with a rewardsprogram, and wherein usage of the debit card accrues rewards or rebatesfor the cardholder.
 46. The method according to claim 45, wherein therewards program is also associated with a credit card issued to thecardholder, and wherein usage of the credit card also accrues rewards orrebates for the cardholder.
 47. The method according to claim 45,wherein the rewards program is co-branded with a merchant partner of thesponsoring bank and provides one or more incentives for the cardholderto transact with the merchant partner using the debit card.
 48. Themethod according to claim 47, wherein the co-branded rewards programprovides more rewards or rebates to the cardholder for using the debitcard in transactions with the merchant partner than with othermerchants.
 49. The method according to claim 47, wherein the rewards orrebates earned in the co-branded rewards program can only be applied totransactions with the merchant partner.
 50. The method according toclaim 41, wherein the payment network is a credit payment network. 51.The method according to claim 41, wherein the payment network is a debitpayment network.
 52. The method according to claim 41, furthercomprising: transferring funds from the associated demand depositaccount via one or more automated clearing house (ACH) transactions. 53.The method according to claim 41, wherein the card transaction isapproved in substantial real-time and the settlement of the approvedcard transaction occurs at a later time.
 54. The method according toclaim 41, wherein both the approval of the card transaction and thesettlement of the approved card transaction occur in substantialreal-time.
 55. The method according to claim 41, wherein at least aportion of the funds are transferred from the associated demand depositaccount prior to the card transaction to form a stock of funds held bythe sponsoring bank.
 56. The method according to claim 55, furthercomprising: replenishing the stock of funds by transferring additionalfunds from the associated demand deposit account.
 57. The methodaccording to claim 41, further comprising: associating the debit cardwith a second demand deposit account.
 58. The method according to claim41, wherein the debit card bears a MasterCard®, a VISA® logo, aDISCOVER® logo, or an AMERICAN EXPRESS® logo.
 59. The method accordingto claim 41, wherein the debit card is branded with an indicia of thesponsoring bank.
 60. The method according to claim 41, wherein the debitcard is co-branded with an indicia of a merchant partner of thesponsoring bank.
 61. The method according to claim 41, wherein, at timeof issuance, the debit card comprises embossed information and magneticstripe information.
 62. A system for distributing debit cards, thesystem comprising: means for issuing, by a sponsoring bank, a debit cardto a cardholder, the debit card being associated with a demand depositaccount (DDA) held at a linked bank that is different from thesponsoring bank; means for receiving, by the sponsoring bank, anauthorization request for a card transaction initiated with the debitcard; means for approving the card transaction; and means for settlingat least a portion of the approved card transaction with funds from theassociated demand deposit account held at the linked bank.
 63. A methodfor distributing bank cards, the method comprising: issuing, by asponsoring bank, a universal bank card to a cardholder, wherein, at timeof issuance, the universal bank card is not associated with any bankaccount at the sponsoring bank; and causing the cardholder to activatethe universal bank card by associating the universal bank card with abank account held at a linked bank that is different from the sponsoringbank, wherein approved transactions initiated with the universal bankcard are funded by the associated bank account.
 64. A computerizedmethod for distributing bank cards, the method comprising: issuing, by afirst bank, a universal bank card to a cardholder, wherein, at time ofissuance, the universal bank card is not actively associated with anybank account; and causing the cardholder to activate the universal bankcard by associating the universal bank card with at least one bankaccount selected from a group consisting of: one or more accounts heldat the first bank, and one or more accounts held at a second bank thatis different from the first bank; receiving an authorization request fora card transaction initiated with the universal bank card, theauthorization request being routed via a payment network; approving thecard transaction; and settling at least a portion of the approved cardtransaction with funds from the at least one bank account that has beenassociated with the universal bank card.
 65. The method according toclaim 64, wherein the one or more accounts held at the first bankcomprise a bank account pre-built for the cardholder.
 66. The methodaccording to claim 64, wherein the one or more accounts held at thefirst bank comprise a pre-existing bank account that the cardholder heldat the first bank prior to the issuance of the universal bank card. 67.The method according to claim 64, wherein the one or more accounts heldat the first bank comprise a new bank account that the cardholder opensat the first bank subsequent to the issuance of the universal bank card.68. The method according to claim 64, wherein the one or more accountsheld at the second bank comprise a pre-existing bank account that thecardholder held at the second bank prior to the issuance of theuniversal bank card.
 69. The method according to claim 64, wherein theone or more accounts held at the second bank comprise a new bank accountthat the cardholder opens at the second bank subsequent to the issuanceof the universal bank card.
 70. The method according to claim 64,wherein the universal bank card is associated with a rewards program,and wherein usage of the universal bank card accrues rewards or rebatesfor the cardholder.
 71. The method according to claim 64, wherein theuniversal bank card is associated with a single bank account at anygiven time.
 72. The method according to claim 64, wherein the universalbank card is simultaneously associated with multiple bank accounts. 73.A computerized method for distributing bank cards, the methodcomprising: issuing, by a first bank, a bank card to a cardholder, thebank card being associated with a first bank account held at the firstbank; causing the cardholder to associate the bank card with a secondbank account held at a second bank that is different from the firstbank; approving a card transaction initiated with the bank card; andsettling at least a portion of the approved card transaction with fundsfrom the second bank account.
 74. The method according to claim 73,wherein the bank card is selected from a group consisting of: debitcard, check card, ATM card, and stored value card.
 75. The methodaccording to claim 73, wherein the bank card is associated with arewards program, and wherein usage of the bank card accrues rewards orrebates for the cardholder.